A dividend yield of 8% is near the threshold of what you’d consider unsustainable. However, that doesn’t mean these stocks are not worth buying. If you want very high yields, there are companies that can pay over 8% fairly consistently and have a history of maintaining high payouts, but this is nowhere near as safe as Dividend Aristocrats.
The coming months may be great for these high-yielders, since interest rate cuts are expected starting in September. In turn, this should encourage more investments in these stocks as Treasury yields decline and Wall Street looks elsewhere for yields.
Here are three to look into with good fundamentals:
Plains All American Pipeline LP (PAA)
Plains All American Pipeline LP (NASDAQ:PAA) is a master limited partnership midstream energy company. As the company’s name suggests, the operations are built around transporting crude oil and natural gas across North America. Midstream companies are among the best investments you can make in this current environment. They have high yields, are safe from tariffs, and are insulated from shocks in the energy market.
The usage of oil and gas pipelines has been surging due to Europe turning to North America for its energy needs. The U.S. and Canada are seeing a surge in oil and gas exports. The company’s adjusted EBITDA reached $754 million in Q1 2025, up from $718 million in the year-ago quarter.
The company has been acquiring pipelines to boost growth, and earnings are enough to cover dividends. It expects full-year adjusted free cash flow of approximately $1.1 billion. If PAA keeps dividends at $1.52 per share, dividends will total $1.069 billion for all outstanding shares. That’s not a wide buffer, but a small dividend cut won’t send investors running for the exits, as that’s more or less expected when you’re chasing high yields. Plus, yields will remain very attractive even if there is a small cut.
PAA stock comes with an 8.52% forward dividend yield.
CrossAmerica Partners LP (CAPL)
CrossAmerica Partners LP (NYSE:CAPL) is right at $20 as of writing, and it has been quite stable in the $18 to $24 band for many years. This company distributes motor fuels and operates convenience stores. They also own and lease real estate used in the retail distribution of motor fuels.
It’s one of the only few high-yield stocks you can buy without dipping your toes into BDCs or risky REITs. That said, the company is going through a rough patch due to high interest expenses. It has kept on paying high yields, and interest rate cuts in September should start alleviating this problem.
In FY 2024, net interest losses were $52.3 million, which shaved off the majority of CrossAmerica’s $65.6 million in operating income.
The Q1 is seasonally weak, so the quarterly payout ratio is low. Dividends have been unchanged since 2018.
Free cash flow should cover payouts by 2026 or earlier as rate cuts start.
In the meantime, you can cash in on CAPL stock’s 10.53% forward dividend yield.
Westlake Chemical Partners LP (WLKP)
Westlake Chemical Partners LP (NYSE:WLKP) is a master limited partnership that produces ethylene. It is a chemical building block that is used in industrial applications. 95% of this ethylene output is sold to its parent company, Westlake. This is why WLKP is one of the most stable and consistent cash cows and has been trading at ~$20 (±$5) for nearly a decade.
Turning to the Q2 2025 earnings, WLKP reported net income of $14.6 million, or $0.41 per limited partner unit, on net sales of $297.1 million. This is a slight increase from $14.4 million in the year-ago quarter, though it still fell short of analyst consensus. Analysts expected $0.44.
Nevertheless, this didn’t translate into a negative reaction by the market. The shortfall was largely driven by higher maintenance capital expenditures related to the Petro 1 turnaround (basically a shutdown) of $24 million. Long-term, the company sees no further major planned outages in 2025 or 2026, and cash flow should rebound in earnest.
The forward dividend yield is 8.56%, with the forward payout ratio at 80.23%. Since its IPO in 2014, WLKP stock has not reduced its dividends.
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